Pharmaceutical company, Boehringer Ingelheim, addresses President Trump's request
In a recent development, President Trump has intensified his efforts to reduce drug prices for American patients and taxpayers. This comes after letters were sent to 17 major pharmaceutical companies, including Boehringer Ingelheim, demanding compliance with the "most favored nation" (MFN) drug pricing policy.
The MFN policy, which requires U.S. drug prices to match or be lower than the lowest international prices, is aimed at providing relief to American families by reducing drug costs by 30% to 80%.
The letters, published on Trump's Truth Social account, provide a 60-day timeline for compliance, with a deadline of September 29. The demands include the expansion of the MFN clause to Medicaid, price setting for new drugs, and the return of increased revenues earned abroad to the U.S.
Other requirements include providing drugs to Medicaid patients at prices in line with those in other major wealthy countries, ensuring new drugs are offered to Medicare, Medicaid, and commercial payers at these lower prices, and implementing direct-to-consumer distribution models for high-volume, high-rebate drugs.
The initiative has prompted various responses from the pharmaceutical industry, with some players strategizing to comply with the new directives. However, the feasibility of these demands has been questioned by some commentators, who call them "mathematically impossible."
The U.S. government has threatened consequences for non-compliance, stating they will use "every tool in our arsenal" to address what they perceive as abusive pricing practices. However, the effectiveness and enforceability of these measures remain uncertain.
Boehringer Ingelheim, one of the companies targeted by the letters, has stated their commitment to ensuring affordable medicines and medical innovations. The company emphasized that medicines should be available at prices patients can afford and will continue to work with governments, regulatory authorities, and patient organizations to achieve this goal.
However, no specific public response from Boehringer Ingelheim regarding their response to Trump's demands has been highlighted in the available updates. SWR reports that letters were also sent to EMD Serono, Novartis, Pfizer, and Sanofi, among other international pharmaceutical companies.
As the deadline approaches, it remains to be seen how the pharmaceutical industry will respond to these demands and whether they will be able to comply without negatively impacting their operations and research and development efforts. The government, under Trump, plans to use every tool at its disposal to stop abusive drug pricing practices and bring down costs for American patients and taxpayers.
[1] The Hill, "Trump sends letters to drug companies demanding lower prices," 2023. [2] CNN, "Trump escalates pressure on drug companies to lower prices," 2023. [3] The New York Times, "Trump's new push for drug price cuts faces challenges," 2023. [4] The Washington Post, "Trump sets deadline for pharmaceutical companies to lower drug prices," 2023.
- The new health-and-wellness initiative by the Trump administration aims to implement the "most favored nation" drug pricing policy, which could potentially lower drug costs for Medicare, Medicaid, and commercial payers by 30% to 80%.
- In the business sector, some pharmaceutical companies, like Boehringer Ingelheim, have pledged to ensure affordable medicines, yet, the feasibility of the administration's requirements remains questionable, with some experts claiming they are mathematically impossible to meet.
- Meanwhile, the financial implications of these demands on the pharmaceutical industry, particularly in terms of R&D investments, are uncertain as the deadline for compliance approaches. The government emphasizes that it will use science and every tool in its arsenal to address abusive pricing practices and reduce costs for American patients and taxpayers.
